Cattle, planes, beer, and cars: Brussels threatens Trump with a new list of tariffs

BrusselsBrussels increases pressure on Donald Trump. The US president maintains part of the tariffs frozen that he announced against the European Union and has left up in the air what he will ultimately do. Faced with this uncertainty, the European bloc does not want to sit idly by, and the European Commission presented this Thursday a new list of US products on which it threatens to increase customs duties if Trump does not reconsider his trade strategy and take a right to the front in the tariff war.

The list proposed by the EU executive would affect imports worth €95 billion and includes thousands of new items: all types of livestock and agri-food products, both frozen and fresh, as well as electrical machinery (such as batteries) and vehicle parts (from tires to). "Of course, Boeing aircraft could be affected," a community source specified regarding the main US aircraft manufacturer. All these products would thus be added to the other list that the EU already agreed to last month and which is now also frozen pending Washington's decision.

However, this list is by no means definitive, nor would it be automatically applied if Trump ends up raising tariffs. Community sources insist that they simply want to be prepared and are now opening a consultation period to discuss the list with social stakeholders, affected sectors, businesses, and employers' associations. Furthermore, Member States should also negotiate and validate it if they believe its application is appropriate. "The list is very open, and we will listen to all opinions," the same sources emphasize.

However, Brussels assures that putting this list on the table allows it to "be prepared for a new tariff increase" from the United States and, at the same time, have more leverage at a potential negotiating table with the White House. In fact, both the European Commission and the Member States prioritize reaching an agreement with Washington and avoiding a trade war with the American superpower.

In this sense, according to EU sources, Thursday's move is intended above all to unblock the situation, which Trump has frozen, and to put more pressure on him to sit down and negotiate and end the tariff escalation. However, the White House has given no clue as to what decision it will ultimately take on July 9, when the 90-day freeze on the 20% customs duties that Washington announced it would apply across the board to a range of European products expires.

However, the European Commission insists that it has no intention of raising import taxes on US products beyond what is necessary, and that it will always act with "predictability" and "reciprocity." For this reason, Brussels has not included pharmaceutical products, which are not affected by Trump's tariffs, on the new list, but has included some alcoholic beverages (such as beer and wine), as the White House has ultimately targeted them. For example, Brussels has included Bourbon whiskey, which the EU ended up removing from the first list to prevent—unsuccessfully—Trump from turning on European wine.

On the other list, among the most notable elements They ranged from foodstuffs like eggs, palm oil, and sausages to precious stones like diamonds, as well as everyday products like dental floss, contact lenses, and plastic bottle caps. However, this list is also frozen, awaiting the next moves by the Republican administration.

Battle at the WTO

Brussels has also announced that it will take US import tariffs on cars and vehicle parts to the World Trade Organization (WTO). "The EU has the unequivocal view that these tariffs blatantly violate fundamental WTO rules," the statement issued by the European Commission states. However, European Commission President Ursula von der Leyen asserts in the same statement that she remains "fully committed to finding a negotiated solution with the United States."